FIC and its coalition partners praise USDA for taking on the tournament system and the pervasive culture of retaliation in poultry farming. The following press release was published by the Campaign for Contract Agriculture Reform (CCAR). FIC is a member of CCAR.
FOR IMMEDIATE RELEASE
U.S. Department of Justice Takes Landmark Action Against Poultry Companies for Deceptive Grower Payment Practices
July 25, 2022– Today, the Campaign for Contract Agriculture Reform (CCAR) applauded the U.S. Department of Justice for civil antitrust actions taken against poultry companies Sanderson Farms and Wayne Farms for deceptive contracting and grower payment practices.
The lawsuit alleges that the two poultry companies violated the Packers and Stockyards Act by engaging in deceptive practices regarding the “tournament system,” which is the system used by most poultry companies to pay contract growers.
The lawsuit is part of a larger case alleging that Sanderson Farms, Wayne Farms and Cargill violated the Sherman Act by sharing poultry plant worker wage data and used that information in a manner that depressed plant worker compensation.
“The lawsuit filed today is a much-needed recognition by the federal government of how deceptive the tournament system is for contract poultry growers,” said Steve Etka, Policy Director for CCAR. “The proposed consent decree is an excellent first step toward creating a fairer and more transparent payment system for growers.”
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